Which of the Following Is Not One of the "Slippages

question 252

Multiple Choice

Which of the following is not one of the "slippages" between changes in output and changes in the unemployment rate?

• A) As the size of the labor force increases, the interest rate increases, and therefore output falls.
• B) The percentage increase in the number of jobs is less than the percentage increase in output.
• C) The labor force increases when output increases.
• D) The change in the number of jobs and the change in the number of people employed are not equal.

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Definitions:

Tax Liability

The total amount of tax that an individual or corporation is legally obligated to pay to an authority as the result of the occurrence of a taxable event.

Dividends Paid

Cash or other forms of payouts made by a company to its shareholders from its earnings.

Net Cash Flow

The difference between a company's cash inflows and outflows in a given period.

Operating Income

The profit earned from a firm's core business operations, excluding deductions of interest and tax.